Operational (Transaction) Risk
In the context of payment systems, operational risk is the risk of loss resulting from inadequate or failed internal processes, systems, and staff, or from external events. Operational risk includes various physical and information security risks. Institutions should address operational risk by adopting the appropriate internal and operating controls, information security policies and controls, operational resiliency policies and resources, and by comprehensively and effectively auditing these policies, controls, and resources. Institutions should ensure all policies, controls, and resources are sufficient to meet all regulatory expectations.See Appendix F for a discussion of the "Interagency Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System."
Legal (Compliance) Risk
Internal and Operational Controls